Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow remained negative but improved significantly compared to both the prior quarter and the same quarter last year. The improvement was driven by higher operating cash flow while capital expenditure was stable versus the prior quarter and lower year over year.
- Revenue was stable, while operating cash flow increased, leading to a higher free cash flow margin. Capital expenditure remained unchanged from the prior quarter but was lower than a year ago, contributing to the narrower negative free cash flow.
- Compared to the prior quarter, free cash flow improved with a higher operating cash flow and stable capital expenditure. Versus the same quarter last year, free cash flow also improved, driven by higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
-$356.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$976.0M
Cash generated by operations before capital spending.
CapEx
$1.3B
Capital spending and related asset purchases.
FCF margin
-12.5%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-09-30 | $3.3B | $985.0M | $1.8B | -$847.0M | -25.8% |
| 2024-12-31 | $3.0B | $1.1B | $1.7B | -$639.0M | -21.6% |
| 2025-03-31 | $2.9B | $545.0M | $1.3B | -$709.0M | -24.2% |
| 2025-06-30 | $2.9B | $976.0M | $1.3B | -$356.0M | -12.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 374.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 46.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Improvement
Operating cash flow was higher than both the prior quarter and the same quarter last year, while revenue remained unchanged. This was the primary factor behind the narrower negative free cash flow.
Higher operating cash flow directly reduced the free cash flow deficit without requiring a change in revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, while operating cash flow increased, leading to a higher free cash flow margin. Capital expenditure remained unchanged from the prior quarter but was lower than a year ago, contributing to the narrower negative free cash flow.
Compared to the prior quarter, free cash flow improved with a higher operating cash flow and stable capital expenditure. Versus the same quarter last year, free cash flow also improved, driven by higher operating cash flow and lower capital expenditure.
Monitor whether operating cash flow can sustain its higher level relative to revenue in future quarters.